Upstream Activities - Indonesia

Consistent with the Group's long-term business plan to diversify its business activities, our wholly-owned subsidiary, Kulim Energy Nusantara Sdn Bhd ("KENSB"), had on 23 October 2014 executed a Joint Operating Agreement ("JOA") with PT Graha Sumber Berkah ("PT GSB") and PT Radiant Bukit Barisan E&P ("PT RBB") to participate in the exploration and development of an O&G field in the South West Bukit Barisan ("SWBB") Block in Central Sumatera, Indonesia. 

Subsequently, on 10 December 2014, KENSB entered into a Conditional Subscription and Shares Purchase Agreement ("CSSPA") with PT Citra Sarana Energi ("PT CSE") and its existing shareholders, PT Wisesa Inspirasi Sumatera ("PT WIS") and PT Inti Energi Sejahtera ("PT IES") for a 60% stake in PT CSE. The move is aimed to secure Kulim's interest at the shareholding level and is expected to enable Kulim to expand its involvement in the O&G sector in Indonesia, particularly in the niche upstream activities of exploration, development and production.